Brown ‘appalled’ by bank bonuses

Prime Minister Gordon Brown says he is “appalled” that some financial firms are continuing – or even extending – their bonus culture.

In a BBC interview to mark a year since the collapse of Lehman Brothers, he said global action was needed to sort out “unfinished business” at banks.

Cleaning up the sector, including global regulation was needed, he added.

President Barack Obama has also warned Wall Street bankers that they cannot go back to their old ways.

‘Counterproductive’

Mr Brown said he was determined that world leaders meeting in Pittsburgh next week would “complete the unfinished business” of cleaning up banks – including establishing rules on bonuses.

Leaders were examining how limits could be imposed on bonuses as a percentage of profits or in revenues.

But in an interview with BBC business editor Robert Peston, he reiterated that global action was essential so that one country was not “isolated” by its stance on remuneration.

“I’m appalled that some institutions are already wanting to return to the old ways; that some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past,” Mr Brown said.

“Some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past.

“Now I will want an agreement – because we’re talking about banks in other countries as well as banks in Europe – at the G20.”